A Regression Analysis Between Demand (Y in 1000 Units) and Price

question 39

Multiple Choice

A regression analysis between demand (y in 1000 units) and price (x in dollars) resulted in the following equation: ​ = 9 - 4x
​
The above equation implies that if the price is increased by $1, the demand is expected to

• A) increase by 5 units.
• B) decrease by 4 units.
• C) decrease by 5000 units.
• D) decrease by 4000 units.

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Definitions:

Net Income

The total profit or loss of a company after deducting all expenses, taxes, and costs from total revenue.

Accounting Period

The span of time at the end of which the financial position of a business is calculated and reported, typically a month, quarter, or year.

Unexpired Insurance

The portion of an insurance premium that has not yet expired during the policy period.

Fiscal Period

A specific time period for which an organization prepares financial statements, typically a year, but can also be a quarter or month.